INCOME TAX CASE LAWS 15.09.2026 Section Case Law Title Brief Summary Citation Relevant Act Section 508 Notification 2 of 2026 Guidelines issued for Registrars and Share Transfer Agents (RTAs) detailing format and procedure for half-yearly SFT reporting of Mutual Fund transactions to pre-fill capital gains in ITRs. Click Here Income-tax Act, 2025 Section 508… Read More »
Penalty Under Sections 270A and 271AAD Quashed Due to Vague Notice and Invalid Assessment Order Issue Whether penalties levied under Section 270A(9) and Section 271AAD can be sustained when the show-cause notice lacked specific sub-clauses, Section 271AAD was misapplied to search-seized cash, and the underlying assessment was passed without following mandatory procedures under Section 143(3)… Read More »
No TDS Can Be Deducted From Compulsory Land Acquisition Compensation and Withheld Amount Must Be Released No TDS Can Be Deducted From Compulsory Land Acquisition Compensation and Withheld Amount Must Be Released Issue Whether compensation awarded for compulsory acquisition of land is subject to Tax Deducted at Source (TDS) under Section 194LA of the Income-tax… Read More »
Mismatch Between Service Tax and Income Tax Records Due to Accounting Methods Cannot Justify Addition Issue Whether an Assessing Officer can make an addition for alleged suppressed turnover based solely on a mismatch between service tax returns and income tax returns, when the assessee consistently follows the Percentage of Completion Method (POCM) under Section 145.… Read More »
Corporate Guarantee Commission Rate Restricted to 0.60 Percent Following Consistency Rule, and TDS Reconciliation Remanded for Re-Verification Issue Whether the Transfer Pricing Officer (TPO) was justified in departing from the established 0.60% arm’s length corporate guarantee rate by relying on external bank guarantee rates, and whether short credit of TDS/TCS granted by the Assessing Officer… Read More »
Unsupported Presumptions and Lack of Evidence Cannot Disallow Section 80-IE Deduction or Reallocate Ordinary Profits Issue Whether an assessee-firm is entitled to Section 80-IE deduction when concurrent findings confirm old machinery did not exceed 20%, and whether the AO can arbitrarily reduce eligible profits by allocating royalty, management fees, and R&D expenses under Section 80-IA(10)… Read More »
Reassessment Notice Based on Mere Change of Opinion Already Examined in Scrutiny Is Invalid Reassessment Notice Based on Mere Change of Opinion Already Examined in Scrutiny Is Invalid Issue Whether an assessment reopened under Section 148 of the Income-tax Act, 1961 is legally permissible when the specific transaction relied upon for reopening was already thoroughly… Read More »
Disclosed Opening Balances and Wealth-Tax Records Fully Explain Cash and Jewellery Found During Search Disclosed Opening Balances and Wealth-Tax Records Fully Explain Cash and Jewellery Found During Search Issue Whether cash and jewellery seized during a search under Section 132 can be treated as unexplained under Section 69A when supported by accepted opening cash balances,… Read More »
Payment Made on First Working Day Post Bank Holiday Entitles Trust/Company to Employee PF/ESI Deduction Payment Made on First Working Day Post Bank Holiday Entitles Trust/Company to Employee PF/ESI Deduction Issue Whether an Assessing Officer can disallow employee PF/ESI contributions under Section 36(1)(va) when the payment delay was solely due to bank holidays (Saturday and… Read More »
Absence of Live Nexus and Compliance with Pre-2021 PF Rules Invalidates Section 148 Reassessment Notice Issue Whether a reassessment notice under Section 148 is valid when the third-party statement lacks a live nexus with the assessee’s share capital transaction, and when late employee PF/ESIC deposits (paid before the Section 139 return due date) did not… Read More »